December 2, 2022

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Will Google Pay Increase Its Market Share?

In the heated battle for the top spot in the mobile app payment market, a very small number of players dominate. Of these, there are still huge disparities in terms of the number of regular users. At the head of the pack by a very wide margin (in the US at least) is Apple Pay, which commands a staggering 92% market share in North America. Google Pay, meanwhile, currently holds a mere 5% of the market.

This is despite the fact that 57% of Americans use iOS, while 42% of Americans use Android. So, will Google ever be able to close this gap between its flagship payment service and its biggest rival? Let’s take a closer look to see how Google Play could boost its flagging market share.

More Features

While Google Pay does offer more features than its biggest competitor, these are not necessarily the features that users value. The most notable of Google Pay’s additional features is the Gift Card wallet, which allows users to instantly transfer gift cards and loyalty points straight to their Google Wallet.

However, there is one glaring omission from Google’s offerings. Strangely, Google does not offer credit lines to users.

Meanwhile, Apple Pay automatically pairs with the Apple Credit Card, allowing users to make purchases on credit. Given the fact that credit cards are now being issued and used at record levels, especially by younger consumers, this seems like something that Google could address to quickly boost its market appeal.

Better Privacy

It’s no secret that users are more concerned about their data and financial privacy than ever before. On this front, Google Pay has a lot of work to do. Apple explicitly states in its user terms that it will never, ever track users’ spending data. Google, meanwhile, makes no such guarantees.

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In fact, every purchase you make with Google Pay is automatically stored on Google’s servers and used to send out targeted ads to those users. This is irritating at the very least and outmoded to boot. If Google took a firmer stance on user privacy, more users might consider making the switch.

Piggyback Onto Growing Niches

If there is anything that Google Pay does well, it is applicability and accessibility. There are many high-growth industries where users can pay for goods and services with Google Play.

One illustrative example here is the booming online casino industry, which is on track to become a $100 billion industry in the next few years. Some of the most competitive casinos have worked to boost their appeal by allowing users to make deposits and withdrawals via Google.

In fact, you can now find a full list of top online casinos that take Google Pay, which includes some of the largest gambling operators in America. If Google is able to maintain its takeup by high-growth digital industries and service providers, its market share could grow considerably.

The success of Apple Pay might seem unassailable, but it is far from assured. With a few changes to its offerings and business model, Google Pay could gain ground fast.